Victorian Consolidated Legislation

Master Builders' Association of Victoria (Guarantee) Act 1979 - SECT 2

Power of Treasurer to execute guarantees

2. Power of Treasurer to execute guarantees



(1) Subject to this section the Treasurer of Victoria may execute a guarantee
in favour of any person or body guaranteeing the repayment of a loan to be
made by that person or body to the Association.

(2) A guarantee by the Treasurer pursuant to sub-section (1) shall be executed
only in respect of a loan-

   (a)  for the implementation of a scheme approved by the Treasurer to enable
        the employment of apprentices;

   (b)  the terms and conditions of which have been approved by the Treasurer;
        and

   (c)  which does not exceed the amount currently set by the Treasurer as the
        maximum amount of such a loan.

(3) The following provisions shall apply to and with respect to a guarantee
under this Act-

   (a)  the guarantee may include any interest charges and expenses chargeable
        by the creditor against the Association and the expenses of enforcing
        or obtaining or endeavouring to enforce or obtain payment of the
        amount guaranteed and those interest charges and expenses;

   (b)  the creditor shall, if required to do so by the Treasurer, obtain take
        and hold or retain and hold securities of such a nature as the
        Treasurer may require for the payment of the amount guaranteed;

   (c)  the guarantee shall not be enforceable against the Treasurer unless
        and until the creditor has exercised his rights and remedies under all
        securities held by or for him in respect of the amount borrowed to the
        satisfaction of the Treasurer;

   (d)  the creditor shall not without the consent in writing of the Treasurer
        assign or encumber the benefit of the guarantee;

   (e)  the guarantee shall be in such form and shall be subject to such other
        terms and conditions as the Treasurer thinks fit.